Chapter 1679 Foote Is Here Too (1/5)

Fengfeng Holdings Group does not want an employee. This condition was never thought of before Tongyue. Malfoy had prepared a lot of negotiating items before, but all of them were disrupted at this time.

Back at the company, Malfoy reported the matter to the board of directors. Ralph had a tough attitude. He refused to agree to this, and did not discuss anything else.

The most troublesome thing now is the salary of these personnel. In 1998, the employees of Tongyong went on strike~70,000 to 80,000 people united, and the whole of Detroit was seriously affected.

And this time the strike also caused Tongyong Motors to lose more than 2.2 billion U.S. dollars. In the end, the management of Tongyong chose to compromise and signed a new labor agreement with the employees, so that the average salary of their employees would rise again.

The average hourly salary of Crazy Field and other car companies in the United States is about 25 US dollars, and the average hourly wage exceeds 70 US dollars. The car itself has relatively high requirements for labor, capital and technology, which makes the production cost of the same application much higher.

Moreover, there are less than 150,000 employees, but more than 300,000 retirees, and the number of people they have to pay for medical insurance and other expenses, including the family members of the employees, exceeds one million!

Every year, the cost of medical insurance alone will stretch the funds used together, not to mention that other benefits cannot be reduced.

Tongyong thought about reducing labor costs and moving factories to Brazil, Mexico, and preferably Asia. But immediately the workers came to a big strike, so they had to give up this idea.

There is another point about Tongyong that made Feng Yu very funny when he read the information at the beginning, that is, the children of Tongyong's employees can be given priority to work in Tongyong's car. This seems to be the same as China's original state-owned enterprise succession system.

China has abolished this system, because it will greatly reduce the competitiveness of enterprises and increase the cost of enterprises. There will be more and more retirees, which will greatly increase the burden on enterprises.

Basically, every time a car rolls off the assembly line, it will pay about $4,000 in medical, pension and union expenses. Feng Yu is absolutely unwilling to bear such a high cost.

Even Feng Yu can assert that no car company is willing to bear this kind of cost. The profit of a car is simply too high, more than double that of other car companies.

Think about the elves under the Bingcheng Machinery Manufacturing Group. The cheap price is less than three thousand dollars.

Could it be that the production of a car does not earn a dime, and it costs one or two thousand dollars just to enter the American market? That is not expansion, but death.

In fact, with the current dilemma,

It also has a certain relationship with Feng Yu. First of all, their joint venture car factory in Modu has less shares than their previous life, but they have invested a lot.

Secondly, the same-use cars have always been large-displacement and powerful cars. When the United States attacked China's polluted environment, Feng Yu asked people to fight back in the United States.

It pointed out that the United States, which has 5% of the world's population, owns 30% of the world's cars, and its carbon dioxide and other exhaust gas emissions account for 45% of the world's total. Here, it occupies nearly one-third.

The U.S. government also responded, advocating that everyone drive small-displacement cars, which made GM, a car company that focuses on large-displacement cars, blind.

In fact, after the oil price rose again last year, the world has entered an era of high oil prices. The average family prefers small, energy-efficient cars. The traditional large-displacement American cars are gradually losing the market, not just shared cars. The same is true for Ford Motors.

On the contrary, during this period of time, the sales of Crazy Field and Bentian in the island country have been rising steadily, because they mainly promote small cars with high energy efficiency in North America, which is also the most prominent place for the island country cars.

Feng Yu remembered that in his previous life, after Obaniu came to power, the United States even passed some bills, which established a standard for energy conservation and emission reduction, and raised the standard year by year to force the reduction of car emissions.

In fact, Obanniu is already announcing his candidacy for the president of this term, and Feng Yu also asked Ralph to do some support. Doing this now is a timely gift.

It is also inseparable from the political strategy of the United States that the current situation has fallen into the current situation. The high wages of workers in the United States and super high welfare benefits have an inescapable responsibility to the government. And it won't be long before an event that Chinese people like to hear and see will usher in the bankruptcy of Detroit, the Motor City in the United States!

Urban bankruptcy was a new term at the time. When the US government declared bankruptcy later, the Chinese people were no longer so surprised.

Tongyong Auto's multi-brand management strategy, Feng Yu has long predicted this, will make Tongyong's brands have no focus and cannot be effectively united, and eventually the core brand will also be weakened.

What's more, Tongyong Automobile actually wants to make airplanes, and has acquired some aircraft companies, aircraft companies, etc., which has deviated the company's core business.

You said Tongyong didn’t know about multi-brand alliances? Of course they knew and made an attempt, but this attempt was very ridiculous in Feng Yu's view.

Tongyong owns spare parts companies, engine companies, etc. For the so-called integration and cost reduction of Tongyong Automobile, they use the same production platform and spare parts for multi-brand products, and the same spare parts for high-end cars and low-end cars.

This has caused high-end cars to be less high-end, which disappointed consumers very much, and also hurt the five major brand strategies that were originally used together.

In Feng Yu's eyes, it is a matter of time before Tongyong goes bankrupt. Even if there is no subprime mortgage crisis, Tongyong will still be ruined.

Their assets are less than 100 billion U.S. dollars, and they have already carried debts of more than 150 billion U.S. dollars. The debt ratio is too high. The interest alone is an astronomical figure, not to mention the ever-increasing employee salaries, pensions, and medical insurance. Gold and more.

During this period of time, Ford Motor has taken some countermeasures, such as layoffs, starting from executives, and stopped the car credit business, because too many people are still unable to get a car loan.

Foote, like Tongyong, also owns a financial credit company, but they only do auto credit, not real estate credit, which greatly increases their ability to resist risks during the subprime mortgage crisis.

And Foote also owns the world's largest car rental company, that is to say, those who have not paid the loan have their cars recovered, and they can continue to create profits for Foote in the leasing company, indirectly reducing Foote's losses.

The three major automobile companies in the United States, Tongyong, Ford, and Coresle (Daimler-Creesle), are all in trouble at this time. Feng Yu actually has a certain interest in their brands.

Malfoy also suspended negotiations with Fengyu Holdings according to the request of the board of directors, but he heard that Ford Motor had gone to Fengyu Holdings Group.

This news shocked the directors of Tongyong!

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